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India’s maritime financing landscape is poised for a significant milestone as Sagarmala Finance Corporation Limited (SMFCL) is set to launch the country’s first-ever blue bond, marking a new chapter in sustainable financing for the maritime and coastal infrastructure sectors.
The proposed issuance is expected to raise up to ₹1,000 crore, including a greenshoe option of ₹500 crore, according to company officials. The initiative is aimed at diversifying funding sources while supporting projects linked to ports, coastal infrastructure, inland waterways and other ocean-based economic activities. The move also aligns with India’s broader vision of strengthening the blue economy through environmentally responsible investments.
Blue bonds are a specialised category of debt instruments designed to finance projects that promote the sustainable use of marine and water resources. While green bonds have gained considerable traction globally in recent years, blue bonds remain a relatively niche segment of the sustainable finance market. According to World Bank estimates, global blue bond issuances crossed $15 billion by mid-2025, highlighting growing investor interest in ocean-focused development initiatives.
For SMFCL, the proposed bond issue represents more than just a fundraising exercise. The maritime-focused non-banking financial company is seeking to secure longer-tenure funding to better match the duration of the loans it extends to infrastructure projects. Industry estimates indicate that while the company’s existing borrowings carry an average tenor of around 3.5 years, the loans it disburses typically extend to nearly 12 years. The blue bond is therefore expected to help reduce asset-liability mismatches and strengthen the institution’s long-term lending capabilities.
Established under the Ministry of Ports, Shipping and Waterways, SMFCL has emerged as India’s first dedicated maritime-sector NBFC. Since commencing lending operations, the institution has focused on addressing financing gaps across strategic maritime segments, including port development, shipbuilding, logistics infrastructure and coastal connectivity projects. The company received its NBFC licence in 2025 and has since positioned itself as a key financial enabler for India’s port-led development strategy.
The upcoming blue bond issue is expected to complement the company’s broader capital-raising plans. SMFCL has previously indicated its intention to mobilise as much as ₹10,000 crore during FY27 through a combination of bonds, term loans and overseas borrowings to support the expansion of India’s maritime ecosystem. Funding will be channelled towards greenfield and brownfield port projects, shipbuilding facilities, inland waterways, multimodal logistics networks and last-mile connectivity infrastructure.
Industry experts view the proposed issuance as a potential catalyst for the development of India’s blue finance market. If successful, the bond could pave the way for other infrastructure and financial institutions to tap sustainable debt instruments dedicated to marine conservation and ocean-linked economic growth, reinforcing India’s ambitions to become a leading maritime nation while advancing environmental stewardship.
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Gujarat government has introduced a shipbuilding subsidy of up to ₹50 crore for shipyards operating within the state. The initiative is designed to complement the Centre’s Shipbuilding Financial Assistance Scheme and enhance Gujarat’s position as a leading maritime and shipbuilding destination. Under the newly announced incentive framework, shipyards can claim financial assistance equivalent to 8% of eligible project costs or ₹50 crore, whichever is lower, for the construction of small and large vessels. For specialised vessels, the subsidy has been enhanced to 10% of eligible costs, capped at ₹50 crore. The support is expected to improve project viability and encourage greater investment in domestic shipbuilding activities. The policy aligns with India’s broader ambition of developing a globally competitive maritime industry and reducing dependence on imported vessels. By offering an additional layer of financial support, Gujarat aims to attract both private and institutional investments into shipbuilding and ship repair infrastructure. Industry stakeholders believe the move could help improve order inflows, increase production capacity, and create new employment opportunities across the maritime value chain. Gujarat already plays a pivotal role in India’s maritime economy, supported by an extensive coastline, established port infrastructure, and a strong industrial base. The state has also been actively promoting the development of shipbuilding and repair clusters in strategic locations such as the Gulf of Kutch and Pipavav. The latest subsidy is expected to accelerate the creation of modern shipyard facilities, including dry docks, fabrication units, jetties, cranes, dredging infrastructure, and research and training centres. The announcement comes at a time when both the central and state governments are intensifying efforts to expand India’s maritime capabilities. Recent national initiatives have focused on increasing shipbuilding capacity, enhancing technological competitiveness, and supporting long-term growth in the sector. Gujarat’s latest intervention is expected to complement these efforts while strengthening the state’s position as a preferred destination for maritime investments. As global supply chains continue to diversify and demand for maritime assets grows, the subsidy could provide a timely boost to India’s shipbuilding industry. Analysts believe the policy will not only support local manufacturing but also contribute to the country’s ambition of emerging as a major global maritime hub in the coming decades. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
India’s maritime regulator has outlined an eight-pillar roadmap aimed at steering the country’s shipping sector toward net-zero emissions, with a focus on cleaner fuels, sustainable port operations, green financing, workforce development and environmentally responsible ship recycling. Speaking on World Ocean Day, Director General of Shipping Shyam Jagannathan said the framework is designed to support the decarbonisation of a sector that handles the vast majority of India’s international trade while aligning with the country’s long-term economic and environmental objectives. The roadmap forms part of the Directorate General of Shipping’s National Maritime Decarbonisation Policy Framework and centres on five broad themes: green shipping and ports, sustainable ship recycling, green finance and technology, human capital development, and waste management. On ship recycling, India intends to align its practices with the standards of the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Authorities also plan to expand the use of digital platforms and improve access to capital for green maritime projects. The roadmap places significant emphasis on workforce development. India currently accounts for around 16.5% of the global seafaring workforce, and policymakers aim to increase that share beyond 20% over time through training and skill development initiatives. Jagannathan linked the maritime transition agenda to the government’s broader Viksit Bharat 2047 vision, highlighting the growing importance of the blue economy. He noted that maritime and ocean-based sectors contribute roughly 4% of India’s GDP and are expected to play a larger role in supporting long-term economic growth. Beyond shipping, the strategy identifies opportunities in cruise tourism, coastal shipping, aquaculture, marine biotechnology and deep-sea resource development. India’s coastline, stretching approximately 11,000 kilometres, is expected to remain central to these growth plans. The policy push is also accompanied by a wider legislative agenda. Proposed reforms include amendments to the Merchant Shipping Act, a new Coastal Shipping Act focused on domestic maritime transport and feeder services, and changes to the Indian Ports Act aimed at encouraging greater private-sector participation and modern port governance models. Addressing environmental concerns, Jagannathan stressed the need to tackle pollution entering marine ecosystems through rivers, including microplastics, untreated sewage and industrial discharge. He reiterated India’s commitment to global climate and ocean sustainability goals while calling for transparent international funding mechanisms that support developing economies during the maritime energy transition. Follow CARGOCONNECT for more such updates.
Kerala is positioning itself to become a major maritime and logistics gateway for India by accelerating investments in ports, coastal shipping, fisheries, logistics infrastructure and other ocean-linked industries under its blue economy strategy. The state government believes its extensive coastline, port network and maritime assets can support long-term economic growth while creating new opportunities in trade, transportation and employment. Kerala has nearly 600 kilometres of coastline, one major port at Kochi and 17 non-major ports, providing a foundation for expanding maritime activity across the state. A key focus of the strategy is strengthening port-led development through the modernization of existing facilities and the operationalisation of smaller ports, including Kollam, Beypore and Azhikkal. Authorities are also working to improve customs and cargo-handling capabilities to facilitate export-import (EXIM) trade and enhance coastal shipping connectivity. The initiative extends beyond ports and shipping. The state has identified sectors such as fisheries, aquaculture, seafood processing, marine research, shipbuilding, cold-chain logistics and coastal tourism as growth areas capable of attracting investment and generating employment. Recent efforts to attract international participation have also supported the state's maritime ambitions. The Kerala-European Union Blue Economy Conclave attracted investment proposals worth ₹7,288 crore from 28 European investors through expressions of interest, reflecting growing interest in Kerala's ocean-based industries and maritime infrastructure projects. Industry observers view the development of coastal shipping and integrated port infrastructure as critical to reducing logistics costs, improving cargo movement efficiency and strengthening Kerala's role in regional and international maritime trade. With continued investment in maritime infrastructure and ocean-based industries, Kerala is seeking to transform its coastline into a key driver of economic growth and establish itself as a strategic gateway for India's expanding blue economy. Follow CARGOCONNECT for more such updates.
